FHA Book

Creativity

In the arts, creativity is a prized quality. Creative musicians, authors, and artists are lauded.

However, in Business & Finance, more often than not “creative” is just used to avoid using the word “shady.” The folks over at Enron and Arthur Andersen were renowned for their creative accounting, and look where it got them.

When it comes to mortgages, “creative financing” was often code for “Here’s a mortgage that you won’t be able to pay for in 3 years.” So remember, responsible lending is boring lending. There’s lots of room for creativity elsewhere.